In today's digital era, online reviews are the virtual welcome mat to your hotel. Positive reviews not only build your reputation but can significantly impact your revenue. Or thats at least what most hotelliers seem to belive. Is is really true according to science? Lets find out!
Building Trust and Credibility
Positive reviews act as social proof of your hotel's quality and hospitality. Travelers often rely on the experiences of past guests to make their decisions. When potential guests read about the wonderful stays others have had, trust and credibility grow. This increased trust can lead to:
Increased Bookings: Positive reviews inspire confidence, prompting travelers to choose your hotel over competitors with fewer or less favorable reviews. Research by Sparks and Browning (2011) establishes a clear connection between positive reviews and increased booking behavior (MDPI).
Repeat Visits: A track record of positive reviews encourages repeat visits from satisfied guests who've found a reliable and enjoyable experience at your hotel. A study by Vermeulen and Seegers (2009) found that exposure to positive online reviews increases the likelihood of guests considering the hotel for future stays (Emerald Insight).
Enhancing Revenue Per Guest
Positive reviews can also enhance your hotel's revenue per guest. Satisfied guests who feel they've received value for their money are more likely to:
Increased Spend on Add-On Services: Happy guests often indulge in additional services, such as room upgrades, spa treatments, or dining at the hotel's restaurant. According to a study published in the International Journal of Contemporary Hospitality Management, positive reviews significantly affect booking intentions and guest spending habits. Note that getting rid of negative reviews is much more important than securing the good ones. (Emerald Insight) (Emerald Insight).
Closing Thoughts
According to science positive reviews are an valuable asset to any hotel. They not only boost bookings but also enhance revenue per guest and lead to higher occupancy rates. Guests today are not just looking for a place to stay; they are seeking memorable experiences. By delivering on this, hotels can leverage the profitable power of positive reviews to ensure long-term success in the ever-competitive hospitality industry. BUT! At Lucy Analytics we are super interested in what science will say about the new era of AI generated reviews. Will smart bots find a way around the big online travel agencies attempts to secure that only legit reviews will be published? The future will tell…
References
Sparks, B.A., & Browning, V. (2011). The impact of online reviews on hotel booking intentions and perception of trust. Tourism Management, 32(6), 1310-1323. Link
Vermeulen, I.E., & Seegers, D. (2009). Tried and tested: The impact of online hotel reviews on consumer consideration. Tourism Management, 30(1), 123-127. Link
Zhao, X., Wang, L., Guo, X., & Law, R. (2015). The influence of online reviews on online hotel booking intentions. International Journal of Contemporary Hospitality Management, 27(6), 1343-1364. Link
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